NEW CASE STUDIES ECO CENT

Ecocent, Dave Remedios

Research and Case Studies  ·  Case Study 02

Ecocent

A study on leveraging the metal scrap recycling industry to manufacture coins instead of using virgin metals, reducing carbon footprint and production costs while keeping materials in the circular economy.

Project Details 02

Design Question

How might we leverage the scrap recycling industry to produce a greener, environmentally and economically sustainable coin for the US economy?

Approach

Desk Research Materials Analysis Financial Modelling Circular Economy

Author

Dave Remedios

Type

Case Study  ·  Circular Economy Research

Institution

Parsons School of Design, New York

Focus

Circular Economy

Materials

Copper, Zinc, Nickel

Scale

13.5 billion coins per year

Potential saving

$20.25M annually

Ecocent
Design Brief

Coins from
scrap

The United States currently mints approximately 13.5 billion new coins annually. These coins are composed of alloys containing copper, zinc and nickel, resulting in the extraction of roughly 22,000 metric tons of virgin materials from domestic mines every year.

"How might we leverage the scrap recycling industry to help produce a greener, environmentally and economically sustainable coin for the US economy?"

Design Brief, Ecocent

This process contributes significantly to the nation's carbon footprint. Astonishingly, it costs approximately 1.76 cents to produce a coin with a face value of just 1 cent, making it one of the most economically inefficient objects in circulation.

Stats and Figures

13.5B

Coins minted annually in the US

22K

Metric tons of virgin material extracted yearly

1.76¢

Cost to produce a 1 cent coin

$20M+

Potential annual saving via urban mining

138M MT

Recycled materials produced by US in 2018

$109B

Annual economic activity from US recycling

40%

Material cost reduction with recycled copper vs virgin

Primary Desk Research

How coins are
made today

US coins are predominantly made from nickel, zinc and copper, sourced from domestic mines. The process is energy-intensive, multi-stage and entirely reliant on virgin material extraction, creating both environmental and economic inefficiency at scale.

Mine Cu, Zn, Ni extraction Refine Purify metals energy intensive Melt and Blend Alloy creation specific ratios Roll Sheets Cast ingots precise thickness Cut Blanks Punch shapes from sheets Anneal and Clean Riddle, soften remove impurities Upset Raise edge rim strengthen blank Strike Press die design Ready for circulation 01 02 03 04 05 06 07 08

Current US coin manufacturing process, 8 stages, entirely reliant on virgin material extraction

US MINT PRODUCTION, 2021 vs 2022 (Billions of coins by denomination) 2021 2022 9B 6B 3B 0 Cents 7.6B 8.4B Nickels 1.3B 1.2B Dimes 2.6B 2.5B Quarters 1.7B 1.5B Total 2021: 13.4B · 2022: 13.7B · Avg: 13.5B/yr Source: US Mint Annual Reports 2021, 2022
US Mint data 2021, 2022, production by denomination
COST OF PRODUCTION AND CIRCULATION (Face value vs cost to mint, in cents) Face value Cost to mint Penny (1¢) Cost: 2.1¢ Loss 1.1¢/coin · $148.5M annual loss Nickel (5¢) Cost: 7.4¢ Loss 2.4¢/coin · net deficit to US Treasury Dime (10¢) Cost: 3.2¢ Surplus 6.8¢/coin · profitable denomination Quarter (25¢) 10.5¢ Surplus 14.5¢/coin US Treasury loses money on every penny and nickel minted Significant fiscal drain · Source: US Mint 2022 Annual Report · Seigniorage data
Cost of production and circulation, face value vs production cost per coin

Cost of implementing a new coin composition, conventional vs urban mining

Conventional, change to steel

Machines to retool

22M

vending machines

Implementation cost

$10B

up to $10 billion

Annual saving

$8M – $39M

Payback period

61 – 256 years

Carbon impact

Marginal improvement

Vending compatibility

Incompatible, retool needed

Circular economy

No

vs

Ecocent, urban mining from scrap

Infrastructure retooling

Zero

same machines, same alloy

Implementation cost

$0

no capital outlay

Annual saving

$20.25M

Payback period

Year one, immediate

Carbon impact

40% material cost reduction

Vending compatibility

100% compatible, no change

Circular economy

Yes, metals stay in use

Source: US Mint feasibility studies · Sciencedirect.com material cost analysis · USGS 2022 data

The Opportunity

Urban mining
as a solution

The US recycling industry already produces 138 million metric tons of materials annually. Of the three metals used in US coins, over 1.15 million metric tons were reclaimed from scrap in 2018 alone, over 52 times what is needed to mint the entire national coin supply.

Available scrap vs required, 2018 USGS data

Copper recycled 861,000 MT Zinc recycled 165,000 MT Nickel recycled 124,000 MT Total available 1,150,000 MT vs only 22,000 MT needed for coins We need less than 2% of available scrap material to mint the entire US coin supply

Current approach

Virgin material extraction

Blast from earth, refine, melt, cast. 22,000 MT of virgin copper, zinc and nickel extracted annually. High carbon footprint. $1.76 cost per cent coin. $2.4B, $10B implementation cost for any composition change.

Ecocent approach

Urban mining from scrap

Reclaim metals already in circulation. 40% cheaper material cost. $20.25M annual saving. No retooling of existing vending machine infrastructure required. Same metals, same dimensions, same alloy ratios.

Area of Intervention

The proposed
Ecocent process

The Ecocent proposal introduces only two new steps into an otherwise unchanged manufacturing process. Scrap metal is collected from yards across the country and sorted by composition, then fed directly into step 3 of the existing US Mint process.

Steps 01 (mining) and 02 (refining virgin ore) are bypassed entirely. From step 03 onwards, the process is identical to what the Mint already does every day, using the same equipment, the same alloy ratios, the same coin dimensions and the same vending machine infrastructure.

This is not a reinvention of coin manufacturing. It is a targeted intervention at the source of the problem, replacing the most carbon-intensive and costly part of the process with a cleaner, cheaper and already-existing alternative.

What changes

2 new steps added: Collection and Sorting of scrap metals. Steps 01 (Mine) and 02 (Refine) removed from the process entirely.

What stays the same

Steps 03, 08 identical. Same alloy ratios. Same coin dimensions. Same vending machine compatibility. No capital outlay on infrastructure.

The result

$20.25M annual saving. 40% reduction in material cost. Measurable carbon footprint reduction. Immediate from year one.

Ecocent process, scrap metal collection joins at step 3

S1, NEW Collection Scrap yards S2, NEW Sorting Cu, Zn, Ni joins here NEW ECOCENT STEPS 01, Mine Cu, Zn, Ni extraction ✕ bypassed 02, Refine Purify metals energy intense ✕ bypassed 03, Melt and Blend Alloy creation correct ratios scrap rejoins 04, Roll Sheets Cast ingots precise thickness 05, Cut Blanks Punch shapes from sheets 06, Anneal Riddle, soften remove impurities 07, Upset Raise edge rim strengthen blank 08, Strike Press die design graphics applied Circulation ready New Ecocent steps Bypassed (mining skipped) Scrap rejoins standard

Ecocent process: only 2 additional steps, steps 01 and 02 bypassed, steps 03, 08 identical to existing mint process

Ecocent research
Conclusion

The case for
urban mining

In stark contrast to the extraction-heavy status quo, the United States already produces 138 million metric tons of recycled materials per year, generating $109.78 billion in annual economic activity. The infrastructure exists. The material exists. The economic logic is clear.

One tonne of recycled copper costs approximately $3,000 compared to $5,500 for virgin copper, a 40% material cost reduction, while keeping the metal in the circular economy rather than extracting more from the earth.

Urban mining can deliver a saving of nearly $20.25M annually, without the $2.4B, $10B implementation cost associated with moving to entirely new metal compositions. The same result, at a fraction of the disruption.

$3,000

Per tonne of recycled copper

vs $5,500 for virgin copper

$20.25M

Annual saving via urban mining

13.5B coins × 15¢ avg cost reduction

1.15M MT

Scrap available per year

We need less than 2% of it

The wider impact

Improving the efficiency of coin production would enable the nation to redirect the resulting savings toward welfare measures, education and community investment, helping individuals lift themselves out of poverty and toward a more prosperous future.

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